> ## Documentation Index
> Fetch the complete documentation index at: https://docs.polymarket.us/llms.txt
> Use this file to discover all available pages before exploring further.

# Glossary

> Glossary of common Polymarket terms

## Market Structure & Hierarchy

| Term | Definition |
| - | - |
| **Category** | Broadest classification level organizing instruments by event type (e.g., Sports, Politics, Crypto, Culture). |
| **Series** | More specific classification within a category, such as a sports league or topic (e.g., NFL, NBA, US Presidential, Bitcoin). |
| **Event** | A specific occurrence with multiple possible outcomes. Each event consists of one or more instruments representing the complete set of tradable outcomes. |
| **Product** | The type of contract structure used to format instruments (e.g., Athletic Event Contract, Election Winner Contract, Total Score Contract). |
| **Instrument** | The tradable symbol representing a specific outcome for an event. Follows consistent naming conventions for easy identification. Also called a market. |
| **Market** | Same as an instrument. A tradable outcome with defined resolution criteria and sources. |
| **Contract** | An instance of an instrument. You trade contracts in quantities (e.g., buying 100 contracts). Each contract settles at \$1.00 if the outcome occurs and \$0.00 if it does not. |

## Trading Basics

| Term | Definition |
| - | - |
| **Long position** | Buying contracts of an instrument, trading on the outcome occurring. You pay the current price per contract and receive \$1.00 per contract if the outcome happens. |
| **Short position** | Selling (shorting) contracts of an instrument, trading on the outcome not occurring. You receive the current price per contract but must cover potential losses if the outcome happens. |
| **Order** | A request to buy or sell contracts at a chosen price. |
| **Order book** | List of bids and asks showing available prices and size at each level. |
| **Bid** | Highest price buyers are willing to pay. |
| **Ask** | Lowest price sellers are willing to accept. |
| **BBO (Best Bid and Offer)** | The best bid and ask prices currently available in the order book - the tightest spread at the top of the book. |
| **Spread** | Gap between the bid and the ask. |
| **Size** | Number of contracts available to buy or sell at a given price. |
| **Liquidity** | How much size is available to trade at listed prices. |

## Order Execution

| Term | Definition |
| - | - |
| **Fill** | When your order completes, fully or partially. |
| **Partial fill** | When only part of your order fills. |
| **Execution price** | The price at which your order fills. |
| **Fill price** | Average price you receive when your order fills across multiple levels. |
| **Marketable limit order** | An order that fills at the best available price shown on your screen. |
| **Price impact** | How much your fill price changes because of limited liquidity. |
| **Slippage** | Difference between expected and actual execution price. |
| **Maker** | Trader who adds liquidity by placing an order on the book. |
| **Taker** | Trader who removes liquidity by filling an existing order. |

## Positions & Account

| Term | Definition |
| - | - |
| **Open position** | Contracts you currently hold. |
| **Closed position** | A position you no longer hold because you sold it or the market resolved. |
| **Position value** | Real-time dollar value of your open positions. |
| **Cash balance** | Funds in your account not tied to open positions. |
| **Buying power** | Cash available to open new positions after margin is applied. |
| **Instant buying power** | Part of your deposit that becomes available to trade immediately. |
| **Margin** | Funds locked to cover the maximum possible loss of a short position. Equal to \$1.00 per contract shorted. |
| **Max gain** | The most you can earn on a position. |
| **Max loss** | The most you can lose on a position. |

## Market Lifecycle

| Term | Definition |
| - | - |
| **Clarification** | Extra context added to explain how rules should be understood. |
| **Resolution** | When Polymarket determines the final outcome of a market using the sources listed in the rules. |
| **Settlement** | Final payout of \$1.00 for winning contracts and \$0.00 for losing contracts. |

## Fees & Display

| Term | Definition |
| - | - |
| **Fees** | Trading or platform fees applied to executed orders. |
| **Odds display** | How prices are shown, such as price, percent chance, or American odds. |
| **Open order** | An order waiting on the book to be filled. |
| **Order status** | Whether an order is open, filled, or partially filled. |
| **History** | Section showing your past filled orders and closed positions. |


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